Sensex rises 521 points to pull off biggest gain in 5 month

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Market went all guns blazing after the benchmark Sensex on Tuesday leaped 521 points — its biggest single-day gain in nearly five months — to 28,051 and the Nifty crossed the 8,600-mark on a flurry of buying amid solid overseas cues.

Investors were markedly optimistic in anticipation of positive announcements on the GST front as the GST Council meeting got under way to decide on rates and slabs of the indirect tax, due to be rolled out from April 1 next year.

They also stepped on the pedal to cover short positions, which led to the upmove.

Besides, there are expectations that inflation will stay in the RBI comfort zone, which will usher in lower borrowing costs. The rupee recovering against the dollar too had a positive impact.

Global indices trended up after an unexpected fall in US manufacturing index tempered hopes of an interest rate hike by the Federal Reserve, brokers said.

The 30-share BSE Sensex resumed higher and quickly crossed the 28,000-mark to hit a high of 28,064.39 before settling at 28,050.88, a significant gain of 520.91, or 1.89 per cent. This was the biggest single-day gain since May 25 when it had gained 575.70 points.

The gauge had lost 143.63 points, spooked by tepid start to second quarterly earnings and a lacklustre global trend.

The NSE Nifty retook the 8,600-mark to touch a high of 8,659.80 and finally settled up 157.50 points, or 1.85 per cent, at 8,677.90.

In the process, both the Sensex and the Nifty recorded their biggest single-day gain in nearly five months.